Brookside Energy spreads wings wider Stateside

To expand its presence in the US and respond to significant interest from US investors, Brookside Energy will pursue a listing on the New York Stock Exchange.
The US move follows recent highly encouraging updates from Brookside’s Oklahoma assets and a research house valuation at more than 5x its current share price.
Brookside remains well funded with no need to raise fresh equity, with production goals on track.

Special Report: Brookside is getting ready to make itself more accessible to the huge number of American investors alert to its prospects by listing on the New York Stock Exchange.

One of the few ASX-listed companies in the North American oil and gas sector, it’s a savvy strategic move for Brookside Energy (ASX:BRK) that follows a strong run of news and considerable inbound interest from US investors.

The company will maintain its primary ASX listing by introducing American Depositary Shares (ADSs) to represent its ASX shares.

Managing director David Prentice said: “This is a pivotal moment for Brookside as we take meaningful strides to expand our footprint in the US market through a proposed listing on the NYSE American exchange.

“We are seeing considerable inbound interest from US investors (with several entrants in the T50) and have received feedback that this interest would increase significantly if investors had access to a US registered security trading on a recognised exchange.

“The Board’s decision to pursue this listing, alongside a capital consolidation, aligns with our strategic objective to enhance our US visibility and provide better access to a broader base of international investors.

“We are confident that these initiatives will position the Company for long-term growth and create significant value for our shareholders as we continue to deliver on our mission to deliver best-in-class financial returns for our shareholders through all phases of commodity price cycles by identifying and efficiently developing oil and gas reserves.”

Well funded

Brookside remains well funded with production and operational targets for its assets in the southern SCOOP Play in Oklahoma’s Anadarko Basin on track.

Prentice added: “We are delighted with the outcomes from operations from the Flames-Maroons Development Plan (FMDP).

“We are very much looking forward to updating shareholders on the last operational piece, which involves drilling out the isolation plugs and commencing flow back. This is the last piece of the program to derisk the FMDP project and we are thrilled with progress to date.”

Running with Wolf Pack

The NYSE listing announcement follows a recent positive news flow from Brookside’s US assets, including its Wolf Pack Well paying out within a short 13 months of starting production.

All drilling and completion costs are now fully recovered at the well which is Brookside’s fourth in the SWISH Area of Interest (AOI) in the southern SCOOP Play within Oklahoma’s prolific Anadarko Basin. It’s also Brookside’s third well in the area to pay out within 13 months or less.

Brookside plans to launch Full Field Development in the SWISH AOI early next year, giving the company a major boost in its efforts to become a substantial oil producer.

The company’s healthy profits are rare among junior energy plays and caught the attention of MST Access’s Stuart Baker. The analyst said he expects to those profits to grow in the years ahead as Brookside’s onshore oil production in the Anadarko Basin increases and valued the company on an NPV basis at 5.7c/share. With BRK currently trading at ~1c, that’s premium of around 470%, even before a US listing.

Next steps

Brookside has started work on appointing the various advisors, external counsel, US accountants and independent experts to complete the regulatory and financial requirements for the listing, which is expected to be completed by Q1CY25.

The company will also reduce the number of shares by a 1-for-50 ratio which will increase the share price proportionately, making it more attractive to international investors.

Brookside will communicate a timeline for the proposed listing once the initial registration documentation has been approved, and shareholders will be invited to vote on the proposed capital consolidation at a General Meeting to be scheduled as soon as feasible.

This article was developed in collaboration with Brookside Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.